Tata Group firm Voltas on Monday said marketing costs of launching home appliances brand Voltas Beko — a 50:50 joint venture with Arcelik, the largest industrial conglomerate in Turkey — would not impact margin as the company has already budgeted for the expenses.
In an interview to CNBC-TV18, Pradeep Bakshi, managing director and chief executive officer, said Voltas had already launched Voltas Beko brand pan-India a month ago with entire range of appliances including microwaves, washing machines and dishwashers to begin with.
“They have been given to most channel partners across the length and breadth of the country,” Bakshi said, adding that the initial response was good and looks like the brand is poised for growth going forward.
On the festive demand, Bakshi said the initial festive sentiment looked upbeat but the response hasn’t been very great so far, “However, a week before Diwali the sales go up. Since the company is offering several unique offers like interest free installments, etc. there is hope of a good demand for the products.”
When asked about rupee depreciation and import duty hike would impact Beko products since they are imported, Bakshi said right now the products have already landed in their warehouses and they don’t see too much impact. But going forward, there could be some effect.”
“However, the duty impact would be felt across industry and not only for Voltas as most manufacturers use imported products,” said Bakshi, adding that Voltas will try to be most competitive. – CNBCTV 18